Abu Dhabi-based Tabreed, one of the region’s leading district cooling companies, has signed an agreement with CVC DIF, a Netherlands-based infrastructure equity fund manager, to jointly acquire PAL Cooling Holding from Multiply Group.

The deal carries an equity value of AED 3.8 billion ($1.03 billion) and is subject to standard regulatory approvals.

The acquisition covers eight long-term concessions, including three on Abu Dhabi’s main island and five on Al Reem Island.

The concessions are currently supported by five operational district cooling plants with a combined connected capacity of 182,000 refrigeration tons (RT) as of December 2024. An additional plant is under construction and three more are in the pipeline, with the portfolio expected to deliver a total capacity of approximately 600,000 RT once fully operational.

Founded in 2006, PAL Cooling is a key player in the UAE’s district cooling market, serving major residential, commercial, and mixed-use developments. Its client base includes partnerships with prominent master developers such as Aldar Properties, Modon, and Imkan. The company’s strong presence on Al Reem Island, now integrated into the Abu Dhabi Global Market (ADGM) free zone, positions it to benefit from further development and an approved network expansion plan by the Abu Dhabi Department of Energy.

Dr. Bakheet Al Katheeri, Chairman of Tabreed, described the acquisition as fully aligned with Tabreed’s strategy to expand its sustainable cooling footprint and support Abu Dhabi’s large-scale urban projects.

“This year has been a landmark for Tabreed, marked by strategic ventures such as our Palm Jebel Ali JV. Partnering with CVC DIF for the acquisition of PAL Cooling strengthens our readiness to meet the UAE’s growing demand for efficient, sustainable cooling solutions,” Al Katheeri said.

The agreement was signed at Multiply Group’s Abu Dhabi headquarters by Samia Bouazza, Group CEO and Managing Director of Multiply Group, Khalid Al Marzooqi, CEO of Tabreed, and Özgür Önder, Head of CVC Middle East.

Gijs Voskuyl, Managing Partner at CVC DIF, highlighted PAL’s robust operations and growth potential: “PAL Cooling operates under long-term concession contracts in rapidly developing urban zones. With a strong record in delivering reliable, energy-efficient district cooling, the company fits perfectly with our strategy to back essential infrastructure assets alongside leading partners like Tabreed.”

Khalid Al Marzooqi, CEO of Tabreed, added that the acquisition marks a pivotal step in the company’s expansion plans, reinforcing its position as an industry leader. “Bringing PAL Cooling under Tabreed’s umbrella will ensure these plants are operated by top experts in sustainable cooling while adding scale and strength to our portfolio of long-term, investment-grade assets,” he said.

Özgür Önder noted that the partnership aligns with CVC’s broader focus on energy transition, digital infrastructure, and utilities, sectors that match Tabreed’s vision for growth and sustainability.

From Multiply Group’s perspective, the transaction supports its portfolio optimisation goals.“Divesting PAL Cooling aligns with our strategy to unlock value and boost liquidity for future growth across our core businesses and global expansion plans,” Bouazza said.

The partnership with CVC DIF and the acquisition of PAL Cooling are expected to bolster Tabreed’s ability to deliver large-scale, efficient cooling solutions that support the UAE’s sustainable urban development ambitions.